Railamerica (NYSE:RRA)
Historical Stock Chart
From May 2019 to May 2024
RailAmerica, Inc. (NYSE:RRA) (“RailAmerica”
or the “Company”)
today reported third quarter 2006 earnings from continuing operations of
$7.0 million, or $0.18 per share, compared to $7.5 million, or $0.19 per
share, for the third quarter of 2005. The 2006 results include expenses
of $1.8 million, or $0.03 per share, related to the Company’s
previously announced Process Improvement Project.
Net income for the three months ended September 30, 2006, which includes
discontinued operations, was $6.9 million, or $0.18 per share, compared
to $7.7 million, or $0.20 per share in the three months ended September
30, 2005.
Revenue for the third quarter of 2006 increased $12.2 million, or 12%,
to $117.3 million, from $105.1 million in the third quarter of 2005. On
a “same railroad”
basis, revenue for the third quarter of 2006 increased $5.9 million, or
6%, from the third quarter of 2005, while “same
railroad” carloads declined 2%. Operating
income for the third quarter of 2006 increased 7%, to $13.5 million,
from $12.8 million in the third quarter of 2005. The operating ratio for
the third quarter of 2006 was 88.5% compared to 87.8% in the 2005 third
quarter.
For the nine months ended September 30, 2006, the Company reported
earnings from continuing operations of $19.1 million, or $0.49 per
share, compared to earnings from continuing operations of $21.4 million,
or $0.56 per share for the nine months ended September 30, 2005. Total
costs associated with the Process Improvement Project were $4.8 million,
or $0.07 per share, during the nine months ended September 30, 2006. A
change in Canadian tax laws resulted in a continuing operations tax
benefit of $1.7 million, or $0.04 per share, in the nine months ended
September 30, 2006. Net income for the nine months ended September 30,
2006, which includes discontinued operations, was $29.7 million, or
$0.76 per share, compared to $23.2 million, or $0.60 per share in the
nine months ended September 30, 2005. The 2006 results include the
recognition of a $13.4 million pre-tax gain ($8.3 million net of tax) in
the first quarter of 2006 for the expiration of the warranty period
related to the sale of Freight Australia and the resulting adjustment to
the reserves in discontinued operations, as well as a pre-tax gain of
$2.5 million ($2.4 million net of tax) on the disposition of the Company’s
E & N Railway on June 30.
Revenue for the nine months ended September 30, 2006, increased $38.9
million, or 13%, to $348.5 million, from $309.6 million in 2005. On a “same
railroad” basis, revenue for the nine months
ended September 30, 2006 increased $20.1 million, or 7%, while “same
railroad” carloads declined 2%, from the nine
months ended September 30, 2005. Operating income for the nine months
ended September 30, 2006 was $36.9 million, compared to $37.2 million
for the nine months ended September 30, 2005. The operating ratio for
the nine months ended September 30, 2006 was 89.4% compared to 88.0% for
the nine months ended September 30, 2005.
Charles Swinburn, RailAmerica's Chief Executive Officer, said, “We
are pleased with our results this quarter. Despite the declines in our
carloads, caused in significant part by the slowdown in the housing
market, which resulted in a 12% decline in our lumber carloads compared
to the third quarter of 2005, and the continued work stoppage at a paper
facility in Nova Scotia, coupled with the expense of a single personal
injury during the quarter, we continued to improve our operating
results. Production recommenced in October at the paper facility in Nova
Scotia and we expect carloads from this facility to begin to return to
normal levels during the fourth quarter. In addition, we have made
significant progress at our Ohio railroad, which saw its revenue
increase 17% and its operating loss decline 78% from the second quarter.”
Michael Howe, RailAmerica's Chief Financial Officer, said, "We continue
to make progress on our Process Improvement Project. We have now
completed our implementation planning and will commence implementation
of our plan in the fourth quarter. We have already begun to realize
savings through our staff reductions in June and our strategic sourcing
initiatives. In addition, we have now completed the first year of
operations of the four railroads purchased from Alcoa. The operating
results of those railroads have exceeded our financial and cash flow
targets since we acquired them on September 30, 2005.”
RailAmerica, Inc. (NYSE:RRA) is a leading short line and regional rail
service provider with 42 railroads operating approximately 7,800 miles
in the United States and Canada. The Company is a member of the Russell
2000® Index. Its
website may be found at www.railamerica.com.
DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS: This press
release contains forward-looking statements regarding future events that
involve risks and uncertainties that could cause actual results to
differ materially. Forward-looking statements speak only as of the date
the statement was made. The Company assumes no obligation to update
forward-looking information to reflect actual results, changes in
assumptions or changes in other factors affecting forward-looking
information. If the Company does update any forward-looking statement,
no inference should be drawn that the Company will make additional
updates with respect to that statement or any other forward-looking
statements. We refer you to the documents that RailAmerica files from
time to time with the Securities and Exchange Commission, such as the
Form 10-K, Form 10-Q and Form 8-K, which contain additional important
factors that could cause its actual results to differ from its current
expectations and from the forward-looking statements contained in this
press release.
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the three and nine months ended September 30, 2006 and 2005
(in thousands, except earnings per share)
(unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2006
2005
2006
2005
Operating revenue
$ 117,270
$ 105,138
$ 348,453
$ 309,604
Operating expenses:
Transportation
71,598
65,730
210,947
188,808
Selling, general and administrative
23,672
20,131
74,187
62,545
Net gain on sale of assets
(954)
(995)
(1,957)
(753)
Depreciation and amortization
9,437
7,479
28,385
21,819
Total operating expenses
103,753
92,345
311,562
272,419
Operating income
13,517
12,793
36,891
37,185
Interest expense
(6,712)
(4,795)
(20,175)
(13,728)
Other expense
--
(619)
(480)
(619)
Income from continuing operations before income taxes
6,805
7,379
16,236
22,838
Provision for (benefit from) income taxes
(243)
(77)
(2,836)
1,437
Income from continuing operations
7,048
7,456
19,072
21,401
Gain (loss) from sale of discontinued operations, net of income taxes
(186)
--
10,481
239
Income from discontinued operations, net of income taxes
--
218
163
1,528
Net income
$ 6,862
$ 7,674
$ 29,716
$ 23,168
Basic earnings per common share:
Continuing operations
$ 0.18
$ 0.20
$ 0.49
$ 0.57
Discontinued operations
0.00
0.00
0.28
0.04
Net income
$ 0.18
$ 0.20
$ 0.77
$ 0.61
Diluted earnings per common share:
Continuing operations
$ 0.18
$ 0.19
$ 0.49
$ 0.56
Discontinued operations
0.00
0.01
0.27
0.04
Net income
$ 0.18
$ 0.20
$ 0.76
$ 0.60
Weighted average common shares outstanding:
Basic
38,715
37,901
38,562
37,679
Diluted
39,102
38,526
39,002
38,353
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2006 and December 31, 2005
(in thousands, except share data)
(unaudited)
September 30, 2006
December 31, 2005
Assets
Current assets:
Cash and cash equivalents
$ 8,551
$ 14,310
Accounts and notes receivable, net
83,566
82,395
Current assets of discontinued operations
--
3,140
Other current assets
12,135
14,114
Total current assets
104,252
113,959
Property, plant and equipment, net
931,295
904,588
Long-term assets of discontinued operations
--
25,879
Other assets
97,329
102,950
Total assets
$ 1,132,876
$ 1,147,376
Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt
$ 4,951
$ 6,079
Accounts payable
68,721
75,222
Accrued expenses
32,363
43,524
Current liabilities of discontinued operations
--
4,275
Total current liabilities
106,035
129,100
Long-term debt, less current maturities
396,728
427,794
Deferred income taxes
141,979
141,606
Long-term liabilities of discontinued operations
--
2,261
Other liabilities
18,534
15,337
Total liabilities
663,276
716,098
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value, 60,000,000 shares authorized;
39,282,988 shares and 38,688,496 shares issued and outstanding at
September 30, 2006 and December 31, 2005, respectively
39
39
Additional paid-in capital and other
335,956
330,919
Retained earnings
97,344
67,628
Accumulated other comprehensive income
36,261
32,692
Total stockholders' equity
469,600
431,278
Total liabilities and stockholders' equity
$ 1,132,876
$ 1,147,376
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2006 and 2005
(in thousands)
(unaudited)
Nine months ended
September 30,
2006
2005
Cash flows from operating activities:
Net income
$ 29,716
$ 23,168
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization, including amortization of deferred
loan costs
30,477
23,394
Net gain on sale or disposal of properties
(17,600)
(1,028)
Equity compensation costs
2,176
432
Refinancing costs
--
619
Deferred income taxes and other
(389)
(1,443)
Changes in operating assets and liabilities, net of acquisitions and
dispositions:
Accounts receivable
59
(8,335)
Other current assets
1,942
963
Accounts payable
(6,250)
(10,675)
Accrued expenses
1,671
1,811
Other assets and liabilities
204
396
Net cash provided by operating activities
42,006
29,302
Cash flows from investing activities:
Purchase of property, plant and equipment
(50,478)
(45,350)
Proceeds from sale of assets, net of cash on-hand
32,527
7,769
Acquisitions, net of cash acquired
--
(77,830)
Deferred transaction costs and other
--
(143)
Net cash used in investing activities
(17,951)
(115,554)
Cash flows from financing activities:
Proceeds from issuance of long-term debt
42,100
90,700
Principal payments on long-term debt
(74,295)
(17,506)
Repurchase of senior subordinated notes
--
(4,540)
Proceeds from exercise of stock options and warrants
2,274
7,199
Deferred financing costs
--
(492)
Net cash (used in) provided by financing activities
(29,921)
75,361
Effect of exchange rates on cash
107
288
Net increase (decrease) in cash
(5,759)
(10,603)
Cash, beginning of period
14,310
24,331
Cash, end of period
$ 8,551
$ 13,728
RAILAMERICA, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(amounts in thousands)
(unaudited)
For the three months ended September 30,
Functional Classification
2006
2005
Operating revenue
$ 117,270
100.0%
$ 105,138
100.0%
Operating expenses:
Maintenance of way
13,480
11.5%
13,116
12.5%
Maintenance of equipment
4,237
3.6%
3,916
3.7%
Transportation
40,587
34.6%
36,690
34.9%
Equipment rental
13,294
11.3%
12,008
11.4%
Selling, general and administrative
23,672
20.2%
20,131
19.1%
Net gain on sale of assets
(954)
-0.8%
(995)
-0.9%
Depreciation and amortization
9,437
8.1%
7,479
7.1%
Total operating expenses
103,753
88.5%
92,345
87.8%
Operating income
$ 13,517
11.5%
$ 12,793
12.2%
For the three months ended September 30,
Natural Classification
2006
2005
Operating revenue
$ 117,270
100.0%
$ 105,138
100.0%
Operating expenses:
Labor and benefits
34,520
29.4%
31,842
30.3%
Equipment rents
14,158
12.0%
12,803
12.2%
Purchased services
9,872
8.4%
8,356
7.9%
Diesel fuel
14,424
12.3%
11,309
10.7%
Casualties and insurance
6,644
5.7%
7,208
6.9%
Materials
2,679
2.3%
2,552
2.4%
Joint facilities
3,379
2.9%
3,097
2.9%
Other expenses
9,594
8.2%
8,694
8.3%
Net gain on sale of assets
(954)
-0.8%
(995)
-0.9%
Depreciation and amortization
9,437
8.1%
7,479
7.1%
Total operating expenses
103,753
88.5%
92,345
87.8%
Operating income
$ 13,517
11.5%
$ 12,793
12.2%
RAILAMERICA, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(amounts in thousands)
(unaudited)
For the nine months ended September 30,
Functional Classification
2006
2005
Operating revenue
$ 348,453
100.0%
$ 309,604
100.0%
Operating expenses:
Maintenance of way
41,946
12.0%
39,148
12.6%
Maintenance of equipment
13,023
3.7%
11,639
3.8%
Transportation
117,072
33.6%
102,670
33.2%
Equipment rental
38,906
11.2%
35,351
11.4%
Selling, general and administrative
74,187
21.3%
62,545
20.2%
Net gain on sale of assets
(1,957)
-0.6%
(753)
-0.2%
Depreciation and amortization
28,385
8.2%
21,819
7.0%
Total operating expenses
311,562
89.4%
272,419
88.0%
Operating income
$ 36,891
10.6%
$ 37,185
12.0%
For the nine months ended September 30,
Natural Classification
2006
2005
Operating revenue
$ 348,453
100.0%
$ 309,604
100.0%
Operating expenses:
Labor and benefits
108,106
31.0%
96,897
31.3%
Equipment rents
41,393
11.9%
37,385
12.1%
Purchased services
27,905
8.0%
23,484
7.6%
Diesel fuel
43,158
12.4%
33,020
10.7%
Casualties and insurance
17,275
5.0%
17,405
5.6%
Materials
8,147
2.3%
7,735
2.5%
Joint facilities
9,976
2.8%
9,478
3.0%
Other expenses
29,174
8.4%
25,949
8.4%
Net gain on sale of assets
(1,957)
-0.6%
(753)
-0.2%
Depreciation and amortization
28,385
8.2%
21,819
7.0%
Total operating expenses
311,562
89.4%
272,419
88.0%
Operating income
$ 36,891
10.6%
$ 37,185
12.0%
RAILAMERICA, INC. AND SUBSIDIARIES
Railroad Freight Revenue, Carloads and Average Revenue
Per Carload
Comparison by Commodity Group
(dollars in thousands, except average revenue per carload)
(unaudited)
Three months ended September 30,
2006
2005
Commodity Group
Freight Revenue
Carloads
Average Revenue per Carload
Freight Revenue
Carloads
Average Revenue per Carload
Lumber & Forest Products
$ 13,366
28,375
$ 471
$ 14,109
32,266
$ 437
Chemicals
12,889
27,310
472
11,315
27,527
411
Metal
11,019
25,905
425
9,303
24,013
387
Agricultural & Farm Products
9,019
26,536
340
9,526
26,129
365
Paper Products
8,044
19,965
403
8,298
22,399
370
Coal
7,964
34,372
232
8,529
38,179
223
Metallic/Non-metallic Ores
7,842
23,594
332
4,181
17,167
244
Food Products
7,624
20,756
367
6,955
20,845
334
Railroad Equipment/ Bridge Traffic
6,840
48,846
140
6,089
46,490
131
Minerals
6,297
14,557
433
5,913
15,321
386
Petroleum Products
4,935
12,392
398
3,949
10,879
363
Other
4,447
14,418
308
3,741
13,648
274
Autos
1,580
5,647
280
1,603
5,651
284
Intermodal
737
5,276
140
667
5,149
130
Totals
$102,603
307,949
$ 333
$ 94,178
305,663
$ 308
Nine months ended September 30,
2006
2005
Commodity Group
Freight Revenue
Carloads
Average Revenue per Carload
Freight Revenue
Carloads
Average Revenue per Carload
Lumber & Forest Products
$ 42,901
92,129
$ 466
$ 41,695
96,227
$ 433
Chemicals
37,084
82,772
448
34,420
84,948
405
Metal
30,789
71,781
429
27,652
73,149
378
Agricultural & Farm Products
27,972
82,156
340
26,373
80,835
326
Coal
26,196
113,416
231
24,719
112,626
219
Food Products
23,215
64,210
362
21,407
64,819
330
Paper Products
22,940
59,655
385
24,452
67,690
361
Metallic/Non-metallic Ores
22,462
67,976
330
12,753
47,471
269
Railroad Equipment/ Bridge Traffic
21,231
156,883
135
18,829
152,288
124
Minerals
18,961
44,447
427
16,868
44,223
381
Petroleum Products
14,104
34,391
410
12,543
35,557
353
Other
12,668
43,283
293
10,231
40,403
253
Autos
4,624
16,383
282
4,677
18,342
255
Intermodal
2,053
14,431
142
1,956
15,329
128
Totals
$307,200
943,913
$ 325
$278,575
933,907
$ 298
RailAmerica, Inc. (NYSE:RRA) ("RailAmerica" or the "Company")
today reported third quarter 2006 earnings from continuing operations
of $7.0 million, or $0.18 per share, compared to $7.5 million, or
$0.19 per share, for the third quarter of 2005. The 2006 results
include expenses of $1.8 million, or $0.03 per share, related to the
Company's previously announced Process Improvement Project.
Net income for the three months ended September 30, 2006, which
includes discontinued operations, was $6.9 million, or $0.18 per
share, compared to $7.7 million, or $0.20 per share in the three
months ended September 30, 2005.
Revenue for the third quarter of 2006 increased $12.2 million, or
12%, to $117.3 million, from $105.1 million in the third quarter of
2005. On a "same railroad" basis, revenue for the third quarter of
2006 increased $5.9 million, or 6%, from the third quarter of 2005,
while "same railroad" carloads declined 2%. Operating income for the
third quarter of 2006 increased 7%, to $13.5 million, from $12.8
million in the third quarter of 2005. The operating ratio for the
third quarter of 2006 was 88.5% compared to 87.8% in the 2005 third
quarter.
For the nine months ended September 30, 2006, the Company reported
earnings from continuing operations of $19.1 million, or $0.49 per
share, compared to earnings from continuing operations of $21.4
million, or $0.56 per share for the nine months ended September 30,
2005. Total costs associated with the Process Improvement Project were
$4.8 million, or $0.07 per share, during the nine months ended
September 30, 2006. A change in Canadian tax laws resulted in a
continuing operations tax benefit of $1.7 million, or $0.04 per share,
in the nine months ended September 30, 2006. Net income for the nine
months ended September 30, 2006, which includes discontinued
operations, was $29.7 million, or $0.76 per share, compared to $23.2
million, or $0.60 per share in the nine months ended September 30,
2005. The 2006 results include the recognition of a $13.4 million
pre-tax gain ($8.3 million net of tax) in the first quarter of 2006
for the expiration of the warranty period related to the sale of
Freight Australia and the resulting adjustment to the reserves in
discontinued operations, as well as a pre-tax gain of $2.5 million
($2.4 million net of tax) on the disposition of the Company's E & N
Railway on June 30.
Revenue for the nine months ended September 30, 2006, increased
$38.9 million, or 13%, to $348.5 million, from $309.6 million in 2005.
On a "same railroad" basis, revenue for the nine months ended
September 30, 2006 increased $20.1 million, or 7%, while "same
railroad" carloads declined 2%, from the nine months ended September
30, 2005. Operating income for the nine months ended September 30,
2006 was $36.9 million, compared to $37.2 million for the nine months
ended September 30, 2005. The operating ratio for the nine months
ended September 30, 2006 was 89.4% compared to 88.0% for the nine
months ended September 30, 2005.
Charles Swinburn, RailAmerica's Chief Executive Officer, said, "We
are pleased with our results this quarter. Despite the declines in our
carloads, caused in significant part by the slowdown in the housing
market, which resulted in a 12% decline in our lumber carloads
compared to the third quarter of 2005, and the continued work stoppage
at a paper facility in Nova Scotia, coupled with the expense of a
single personal injury during the quarter, we continued to improve our
operating results. Production recommenced in October at the paper
facility in Nova Scotia and we expect carloads from this facility to
begin to return to normal levels during the fourth quarter. In
addition, we have made significant progress at our Ohio railroad,
which saw its revenue increase 17% and its operating loss decline 78%
from the second quarter."
Michael Howe, RailAmerica's Chief Financial Officer, said, "We
continue to make progress on our Process Improvement Project. We have
now completed our implementation planning and will commence
implementation of our plan in the fourth quarter. We have already
begun to realize savings through our staff reductions in June and our
strategic sourcing initiatives. In addition, we have now completed the
first year of operations of the four railroads purchased from Alcoa.
The operating results of those railroads have exceeded our financial
and cash flow targets since we acquired them on September 30, 2005."
RailAmerica, Inc. (NYSE:RRA) is a leading short line and regional
rail service provider with 42 railroads operating approximately 7,800
miles in the United States and Canada. The Company is a member of the
Russell 2000(R) Index. Its website may be found at
www.railamerica.com.
DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS: This press
release contains forward-looking statements regarding future events
that involve risks and uncertainties that could cause actual results
to differ materially. Forward-looking statements speak only as of the
date the statement was made. The Company assumes no obligation to
update forward-looking information to reflect actual results, changes
in assumptions or changes in other factors affecting forward-looking
information. If the Company does update any forward-looking statement,
no inference should be drawn that the Company will make additional
updates with respect to that statement or any other forward-looking
statements. We refer you to the documents that RailAmerica files from
time to time with the Securities and Exchange Commission, such as the
Form 10-K, Form 10-Q and Form 8-K, which contain additional important
factors that could cause its actual results to differ from its current
expectations and from the forward-looking statements contained in this
press release.
-0-
*T
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the three and nine months ended September 30, 2006 and 2005
(in thousands, except earnings per share)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
2006 2005 2006 2005
----------------------------------------------------------------------
Operating revenue $117,270 $105,138 $348,453 $309,604
----------------------------------------------------------------------
Operating expenses:
Transportation 71,598 65,730 210,947 188,808
Selling, general and
administrative 23,672 20,131 74,187 62,545
Net gain on sale of assets (954) (995) (1,957) (753)
Depreciation and
amortization 9,437 7,479 28,385 21,819
----------------------------------------------------------------------
Total operating expenses 103,753 92,345 311,562 272,419
----------------------------------------------------------------------
Operating income 13,517 12,793 36,891 37,185
Interest expense (6,712) (4,795) (20,175) (13,728)
Other expense -- (619) (480) (619)
----------------------------------------------------------------------
Income from continuing
operations before income
taxes 6,805 7,379 16,236 22,838
Provision for (benefit from)
income taxes (243) (77) (2,836) 1,437
----------------------------------------------------------------------
Income from continuing
operations 7,048 7,456 19,072 21,401
Gain (loss) from sale of
discontinued operations, net
of income taxes (186) -- 10,481 239
Income from discontinued
operations, net of income
taxes -- 218 163 1,528
----------------------------------------------------------------------
Net income $6,862 $7,674 $29,716 $23,168
======================================================================
Basic earnings per common
share:
Continuing operations $0.18 $0.20 $0.49 $0.57
Discontinued operations 0.00 0.00 0.28 0.04
----------------------------------------------------------------------
Net income $0.18 $0.20 $0.77 $0.61
======================================================================
Diluted earnings per common
share:
Continuing operations $0.18 $0.19 $0.49 $0.56
Discontinued operations 0.00 0.01 0.27 0.04
----------------------------------------------------------------------
Net income $0.18 $0.20 $0.76 $0.60
======================================================================
Weighted average common shares
outstanding:
Basic 38,715 37,901 38,562 37,679
Diluted 39,102 38,526 39,002 38,353
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RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2006 and December 31, 2005
(in thousands, except share data)
(unaudited)
September December
30, 2006 31, 2005
----------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $8,551 $14,310
Accounts and notes receivable, net 83,566 82,395
Current assets of discontinued operations -- 3,140
Other current assets 12,135 14,114
----------------------------------------------------------------------
Total current assets 104,252 113,959
Property, plant and equipment, net 931,295 904,588
Long-term assets of discontinued operations -- 25,879
Other assets 97,329 102,950
----------------------------------------------------------------------
Total assets $1,132,876 $1,147,376
======================================================================
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long-term debt $4,951 $6,079
Accounts payable 68,721 75,222
Accrued expenses 32,363 43,524
Current liabilities of discontinued
operations -- 4,275
----------------------------------------------------------------------
Total current liabilities 106,035 129,100
Long-term debt, less current maturities 396,728 427,794
Deferred income taxes 141,979 141,606
Long-term liabilities of discontinued
operations -- 2,261
Other liabilities 18,534 15,337
----------------------------------------------------------------------
Total liabilities 663,276 716,098
----------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value, 60,000,000
shares authorized; 39,282,988 shares and
38,688,496 shares issued and outstanding at
September 30, 2006 and December 31, 2005,
respectively 39 39
Additional paid-in capital and other 335,956 330,919
Retained earnings 97,344 67,628
Accumulated other comprehensive income 36,261 32,692
----------------------------------------------------------------------
Total stockholders' equity 469,600 431,278
----------------------------------------------------------------------
Total liabilities and stockholders' equity $1,132,876 $1,147,376
======================================================================
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RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2006 and 2005
(in thousands)
(unaudited)
Nine months ended
September 30,
2006 2005
----------------------------------------------------------------------
Cash flows from operating activities:
Net income $29,716 $23,168
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization, including
amortization of deferred loan costs 30,477 23,394
Net gain on sale or disposal of properties (17,600) (1,028)
Equity compensation costs 2,176 432
Refinancing costs -- 619
Deferred income taxes and other (389) (1,443)
Changes in operating assets and liabilities, net
of acquisitions and dispositions:
Accounts receivable 59 (8,335)
Other current assets 1,942 963
Accounts payable (6,250) (10,675)
Accrued expenses 1,671 1,811
Other assets and liabilities 204 396
----------------------------------------------------------------------
Net cash provided by operating activities 42,006 29,302
----------------------------------------------------------------------
Cash flows from investing activities:
Purchase of property, plant and equipment (50,478) (45,350)
Proceeds from sale of assets, net of cash on-
hand 32,527 7,769
Acquisitions, net of cash acquired -- (77,830)
Deferred transaction costs and other -- (143)
----------------------------------------------------------------------
Net cash used in investing activities (17,951) (115,554)
----------------------------------------------------------------------
Cash flows from financing activities:
Proceeds from issuance of long-term debt 42,100 90,700
Principal payments on long-term debt (74,295) (17,506)
Repurchase of senior subordinated notes -- (4,540)
Proceeds from exercise of stock options and
warrants 2,274 7,199
Deferred financing costs -- (492)
----------------------------------------------------------------------
Net cash (used in) provided by financing
activities (29,921) 75,361
----------------------------------------------------------------------
Effect of exchange rates on cash 107 288
----------------------------------------------------------------------
Net increase (decrease) in cash (5,759) (10,603)
Cash, beginning of period 14,310 24,331
----------------------------------------------------------------------
Cash, end of period $8,551 $13,728
======================================================================
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RAILAMERICA, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(amounts in thousands)
(unaudited)
For the three months ended
September 30,
Functional Classification 2006 2005
----------------------------------------------------------------------
Operating revenue $117,270 100.0% $105,138 100.0%
----------------------------------------------------------------------
Operating expenses:
Maintenance of way 13,480 11.5% 13,116 12.5%
Maintenance of equipment 4,237 3.6% 3,916 3.7%
Transportation 40,587 34.6% 36,690 34.9%
Equipment rental 13,294 11.3% 12,008 11.4%
Selling, general and
administrative 23,672 20.2% 20,131 19.1%
Net gain on sale of assets (954) -0.8% (995) -0.9%
Depreciation and amortization 9,437 8.1% 7,479 7.1%
----------------------------------------------------------------------
Total operating expenses 103,753 88.5% 92,345 87.8%
----------------------------------------------------------------------
Operating income $13,517 11.5% $12,793 12.2%
======================================================================
For the three months ended
September 30,
Natural Classification 2006 2005
----------------------------------------------------------------------
Operating revenue $117,270 100.0% $105,138 100.0%
----------------------------------------------------------------------
Operating expenses:
Labor and benefits 34,520 29.4% 31,842 30.3%
Equipment rents 14,158 12.0% 12,803 12.2%
Purchased services 9,872 8.4% 8,356 7.9%
Diesel fuel 14,424 12.3% 11,309 10.7%
Casualties and insurance 6,644 5.7% 7,208 6.9%
Materials 2,679 2.3% 2,552 2.4%
Joint facilities 3,379 2.9% 3,097 2.9%
Other expenses 9,594 8.2% 8,694 8.3%
Net gain on sale of assets (954) -0.8% (995) -0.9%
Depreciation and amortization 9,437 8.1% 7,479 7.1%
----------------------------------------------------------------------
Total operating expenses 103,753 88.5% 92,345 87.8%
----------------------------------------------------------------------
Operating income $13,517 11.5% $12,793 12.2%
======================================================================
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RAILAMERICA, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(amounts in thousands)
(unaudited)
For the nine months ended
September 30,
Functional Classification 2006 2005
----------------------------------------------------------------------
Operating revenue $348,453 100.0% $309,604 100.0%
----------------------------------------------------------------------
Operating expenses:
Maintenance of way 41,946 12.0% 39,148 12.6%
Maintenance of equipment 13,023 3.7% 11,639 3.8%
Transportation 117,072 33.6% 102,670 33.2%
Equipment rental 38,906 11.2% 35,351 11.4%
Selling, general and
administrative 74,187 21.3% 62,545 20.2%
Net gain on sale of assets (1,957) -0.6% (753) -0.2%
Depreciation and amortization 28,385 8.2% 21,819 7.0%
----------------------------------------------------------------------
Total operating expenses 311,562 89.4% 272,419 88.0%
----------------------------------------------------------------------
Operating income $36,891 10.6% $37,185 12.0%
======================================================================
For the nine months ended
September 30,
Natural Classification 2006 2005
----------------------------------------------------------------------
Operating revenue $348,453 100.0% $309,604 100.0%
----------------------------------------------------------------------
Operating expenses:
Labor and benefits 108,106 31.0% 96,897 31.3%
Equipment rents 41,393 11.9% 37,385 12.1%
Purchased services 27,905 8.0% 23,484 7.6%
Diesel fuel 43,158 12.4% 33,020 10.7%
Casualties and insurance 17,275 5.0% 17,405 5.6%
Materials 8,147 2.3% 7,735 2.5%
Joint facilities 9,976 2.8% 9,478 3.0%
Other expenses 29,174 8.4% 25,949 8.4%
Net gain on sale of assets (1,957) -0.6% (753) -0.2%
Depreciation and amortization 28,385 8.2% 21,819 7.0%
----------------------------------------------------------------------
Total operating expenses 311,562 89.4% 272,419 88.0%
----------------------------------------------------------------------
Operating income $36,891 10.6% $37,185 12.0%
======================================================================
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RAILAMERICA, INC. AND SUBSIDIARIES
Railroad Freight Revenue, Carloads and Average Revenue
Per Carload
Comparison by Commodity Group
(dollars in thousands, except average revenue per carload)
(unaudited)
Three months ended September 30,
2006 2005
---------------------------- --------------------------
Average Average
Revenue Revenue
Commodity Freight per Freight per
Group Revenue Carloads Carload Revenue Carloads Carload
----------------------------------------------------------------------
Lumber &
Forest
Products $13,366 28,375 $471 $14,109 32,266 $437
Chemicals 12,889 27,310 472 11,315 27,527 411
Metal 11,019 25,905 425 9,303 24,013 387
Agricultural &
Farm Products 9,019 26,536 340 9,526 26,129 365
Paper Products 8,044 19,965 403 8,298 22,399 370
Coal 7,964 34,372 232 8,529 38,179 223
Metallic/Non-
metallic Ores 7,842 23,594 332 4,181 17,167 244
Food Products 7,624 20,756 367 6,955 20,845 334
Railroad
Equipment/
Bridge
Traffic 6,840 48,846 140 6,089 46,490 131
Minerals 6,297 14,557 433 5,913 15,321 386
Petroleum
Products 4,935 12,392 398 3,949 10,879 363
Other 4,447 14,418 308 3,741 13,648 274
Autos 1,580 5,647 280 1,603 5,651 284
Intermodal 737 5,276 140 667 5,149 130
----------------------------------------------------------------------
Totals $102,603 307,949 $333 $94,178 305,663 $308
======================================================================
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Nine months ended September 30,
2006 2005
--------------------------- ---------------------------
Average Average
Revenue Revenue
Commodity Freight per Freight per
Group Revenue Carloads Carload Revenue Carloads Carload
----------------------------------------------------------------------
Lumber &
Forest
Products $42,901 92,129 $466 $41,695 96,227 $433
Chemicals 37,084 82,772 448 34,420 84,948 405
Metal 30,789 71,781 429 27,652 73,149 378
Agricultural &
Farm Products 27,972 82,156 340 26,373 80,835 326
Coal 26,196 113,416 231 24,719 112,626 219
Food Products 23,215 64,210 362 21,407 64,819 330
Paper Products 22,940 59,655 385 24,452 67,690 361
Metallic/Non-
metallic Ores 22,462 67,976 330 12,753 47,471 269
Railroad
Equipment/
Bridge
Traffic 21,231 156,883 135 18,829 152,288 124
Minerals 18,961 44,447 427 16,868 44,223 381
Petroleum
Products 14,104 34,391 410 12,543 35,557 353
Other 12,668 43,283 293 10,231 40,403 253
Autos 4,624 16,383 282 4,677 18,342 255
Intermodal 2,053 14,431 142 1,956 15,329 128
----------------------------------------------------------------------
Totals $307,200 943,913 $325 $278,575 933,907 $298
======================================================================
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